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Chrkeller said:

A Xbox that plays PC and xbox games. Not sure how that is different than my PC that plays PC and xbox games.

Supposedly, it will play all XBOX games from previous generations.

It's most likely still a console, with it's own SDKs and low level optimizations that usual consoles allow for, with games released for it just as for any traditional consoles, while also being able to run in "PC" mode, behaving as pre-built PC.

If MS does indeed treat it as console, it will be interesting to see how the same game performs on its "console" part vs when it runs on it via Steam.